Re: GECRB has no max limit!!!

Interesting...Or I could...Keep the title to the car I own...And lease a brand new car for <$400 a month! Haha

Idk... I'll worry about it when the time comes.Otoh,A friend of mine recently told me that when his lease was up on his Jag, he was able to negotiate the price low enough that it was a great idea for him to buy it at the end of the lease!!!! So, in theory... I could accomplish something such as that!!! :-)And if I could get favorable enough terms that purchasing would make more sense, I would.What attracts me to leasing is of course the affordability of a luxury vehicle, but also the prepaid maintenance packages that are includes with many leases. Only experience and time will allow me to make those decisions appropriately :-)

Re: GECRB has no max limit!!!

acleynes wrote:

My home is in Alaska. The housing bubble burst in 2006. Most homes in the lower 48 states are still about 33% less in value then they were in 2006. Not in Alaska though.

Before 2006, the price of homes in Anchorage, Alaska was rising at an annual rate of about 8-9%. After the housing bubble burst, the price of homes in Anchorage, Alaska still went up!!! Instead of an annual increase of about 8-9%, the price of homes around Anchorage, Alaska went up only 1-2% per year. Even in a recession, the price of homes in Anchorage, Alaska went up.

The price of my home in Anchorage Alaska area went up 4% last year. My mortgage is $1,800 and I rent out two rooms for $600 each.

My home went from $300,000 to $312,000 in value. Plus I rented out two rooms for $12,000. So I made $12,000 in equity and $12,000 in cash (not even including the equity from paying down my mortgage).

Anchorage, Alaska is a city way, way, way out there. And I know it is not a fair representation to most housing markets in the lower 48.

Even if I do not live in my house for 30 years, I can still rent out the home for a profit. My mortgage payment is fixed and will be 9 out of 10 times, will always be lower than what I can reasonably charge for rent my home.

So in practice, I can buy a home with a mortgage, rent out he home for more than the monthly mortgage payment, and make money off the bank's money and of the rise in the home's value.

Also, I may have paid $400,000 for a home that will only be worth $350,000 in 30 years. But compared to a person who just rented for 30 years, I am $350,000 richer. For the convenience of being able to paint my house any color, add shelves to any wall I wanted to, and make any other home improvements I feel like, and not have to worry about a landlord performing an inspection every year, I think a $50,000 "loss" is worth it.

I understand everything you are saying, and even agree with you that purchasing a home is the way to go. I just wouldn't consider loosing 50k an "investment"

Normally people invest in things with the expectation that they are going to turn a profit, people buy houses with the intent to have a place to live. I am about to buy a house myself and agree that is the right thing to do over renting. That said I have no expectation that I will profit from my home ownership.

Now if we start discussing rental property we are on a whole other subject!

Thanks for the discussion guys, that's why I love this board. We can all express our view points and it always stays civil!

Re: GECRB has no max limit!!!

youngandcreditwrthy wrote:Interesting...Or I could...Keep the title to the car I own...And lease a brand new car for <$400 a month! Haha

Idk... I'll worry about it when the time comes.Otoh,A friend of mine recently told me that when his lease was up on his Jag, he was able to negotiate the price low enough that it was a great idea for him to buy it at the end of the lease!!!! So, in theory... I could accomplish something such as that!!! :-)And if I could get favorable enough terms that purchasing would make more sense, I would.What attracts me to leasing is of course the affordability of a luxury vehicle, but also the prepaid maintenance packages that are includes with many leases. Only experience and time will allow me to make those decisions appropriately :-)

You can get the prepaid maintenance with a new car, just as much of a rip off either way.

Getting a discount at the lease end can be a good deal too. Either way, just make sure the numbers are right all around. Be sure to negotiate no matter what you buy. Don't pay MSRP whether leasing or buying. You can negotiate the deal for a purchase, and then get them to use that number for the lease. As long as your starting number is low, go whichever way you choose. It will end up costing the same amount no matter which way you do it, as long as you are able to negotiate.

Leasing doesn't save you any more, you just simply pay for depreciation over a set term. So, you could buy it and do the same. Or lease it and buy it out at the end. Whatever you prefer. I'd rather own my car than be bound to returning it at a set time after paying on it.

Re: GECRB has no max limit!!!

Dustink wrote:

youngandcreditwrthy wrote:Interesting...Or I could...Keep the title to the car I own...And lease a brand new car for <$400 a month! Haha

Idk... I'll worry about it when the time comes.Otoh,A friend of mine recently told me that when his lease was up on his Jag, he was able to negotiate the price low enough that it was a great idea for him to buy it at the end of the lease!!!! So, in theory... I could accomplish something such as that!!! :-)And if I could get favorable enough terms that purchasing would make more sense, I would.What attracts me to leasing is of course the affordability of a luxury vehicle, but also the prepaid maintenance packages that are includes with many leases. Only experience and time will allow me to make those decisions appropriately :-)

You can get the prepaid maintenance with a new car, just as much of a rip off either way.

Getting a discount at the lease end can be a good deal too. Either way, just make sure the numbers are right all around. Be sure to negotiate no matter what you buy. Don't pay MSRP whether leasing or buying. You can negotiate the deal for a purchase, and then get them to use that number for the lease. As long as your starting number is low, go whichever way you choose. It will end up costing the same amount no matter which way you do it, as long as you are able to negotiate.

Leasing doesn't save you any more, you just simply pay for depreciation over a set term. So, you could buy it and do the same. Or lease it and buy it out at the end. Whatever you prefer. I'd rather own my car than be bound to returning it at a set time after paying on it.

Is leasing a good deal if you just want a sweet ride to use every now and then?? I plan on PIF my truck but I definitely wouldnt mind riding a bad ass camaro 5 yrs from now.

Re: GECRB has no max limit!!!

LS2982 wrote:

Is leasing a good deal if you just want a sweet ride to use every now and then?? I plan on PIF my truck but I definitely wouldnt mind riding a bad ass camaro 5 yrs from now.

I was always taught against renting or leasing anything, because at the end you are out money without anything to show for it. If you plan to buy it, it may be good, but if you don't, I don't see it worth it.

Re: GECRB has no max limit!!!

Leasing works like this. You want to lease a $50,000 car for 2 years. The dealer assumes the car will still be worth $30,000 in two years, so they charge you $20,000 to lease the car for those two years. You can pay the $20,000 up front, or pay it over time throughout the lease.

At the end of the two years you can turn the car back in and pay for any damage/excess mileage, or you can pay the $30k and keep it.

You don't end up ahead either way. If you would have purchased the car, you would still only have a $30,000 asset. It just depends whether you think the dealer is giving you a fair deal. If they thought it would only be worth $30k, and it is actually worth $40k then you got overcharged for the lease. On the flip side, it could only be worth $20k and you got a good deal on the lease.

A generally clear benefit of leasing is that at the start you are only paying interest on $20k instead of $50k. So, even if you want to buy the car. You can still negotiate the lease starting price. Lease it and pay less interest at the start. Then negotiate a better buyout price at lease end. This will save you some money on interest, because essentially you have a $20k loan and then a $30k loan. Instead of a $50k loan that will have high interest charges at the start.

With interest rate promotions running so often on new cars, this isn't always a clear benefit.

Don't get stuck in a mindset that you can lease a luxury car for less money than buying it. Don't think of it as the dealer is bearing the depreciation, because that is exactly what they are charging you for.

Re: GECRB has no max limit!!!

LS2982 wrote:

Dustink wrote:

youngandcreditwrthy wrote:Interesting...Or I could...Keep the title to the car I own...And lease a brand new car for <$400 a month! Haha

Idk... I'll worry about it when the time comes.Otoh,A friend of mine recently told me that when his lease was up on his Jag, he was able to negotiate the price low enough that it was a great idea for him to buy it at the end of the lease!!!! So, in theory... I could accomplish something such as that!!! :-)And if I could get favorable enough terms that purchasing would make more sense, I would.What attracts me to leasing is of course the affordability of a luxury vehicle, but also the prepaid maintenance packages that are includes with many leases. Only experience and time will allow me to make those decisions appropriately :-)

You can get the prepaid maintenance with a new car, just as much of a rip off either way.

Getting a discount at the lease end can be a good deal too. Either way, just make sure the numbers are right all around. Be sure to negotiate no matter what you buy. Don't pay MSRP whether leasing or buying. You can negotiate the deal for a purchase, and then get them to use that number for the lease. As long as your starting number is low, go whichever way you choose. It will end up costing the same amount no matter which way you do it, as long as you are able to negotiate.

Leasing doesn't save you any more, you just simply pay for depreciation over a set term. So, you could buy it and do the same. Or lease it and buy it out at the end. Whatever you prefer. I'd rather own my car than be bound to returning it at a set time after paying on it.

Is leasing a good deal if you just want a sweet ride to use every now and then?? I plan on PIF my truck but I definitely wouldnt mind riding a bad ass camaro 5 yrs from now.

I think buying would be better.

You can negotiate a price of about $5,500 off MSRP on the new camero. That would yield a 5 year car payment of around $350/month.

Or you could do a low mileage 3 year lease for around $325 per month.

I think I would rather pay a little more and own the car. Even if you want to get rid of it at the 3 year point, they seem to have decent resale and you would have several thousand in equity.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.